Home Services Common Stock Offers an Expected Total Return of 14.56

question 66

Multiple Choice

Home Services common stock offers an expected total return of 14.56 percent. The last annual dividend was $2.27 a share. Dividends increase at a constant 2.1 percent per year. What is the dividend yield?

• A) 16.66 percent
• B) 16.48 percent
• C) 13.35 percent
• D) 14.20 percent
• E) 12.46 percent

---

Definitions:

Available-for-Sale Debt Securities

Debt investments not classified as held-to-maturity or trading assets, which can be sold before maturity.

Financial Statements

Comprehensive reports that provide insights into a company's financial performance, financial position, and cash flows over a specific period.

Fair Value Adjustment-Trading

The process of adjusting the valuation of trading securities to reflect their current market value.

Adjusting Journal Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the correct period.